Intel Reportedly Plans To Soon Lay Off Thousands of Employees
- Kyle Chua
- Oct 12, 2022
- 2 min read
Intel is likely bracing itself for what could be a turbulent period for the computer market, with the chipmaker reportedly planning to significantly reduce its headcount soon.
According to Bloomberg (via Reuters), the Santa Clara-based tech giant is planning to announce job cuts, likely by the thousands, as early as next month amid a slowdown in personal computer sales. Up to 20% of the company's staff could be affected, including those in sales and marketing groups.
Intel, as of July of this year, had 113,700 employees on its payroll.
The move is supposedly being timed close to Intel's third-quarter earnings report on 27 October, as anonymous sources close to the matter claim. The company slashed its annual sales and profit forecasts after failing to meet estimates in its second-quarter earnings report. CEO Pat Gelsinger during this period said "additional actions" will be taken to lower expenses and improve profits.
The record-high inflation and the reopening of offices and schools are said to be two important factors that led to the decline in computer sales. China’s strict lockdown measures and the conflict in Ukraine also brought supply chain issues for key components of computers, including semiconductors.
Analysts are anticipating a third-quarter revenue drop of about 15%.
The last time Intel had layoffs this big was in 2016, when it cut 12,000 jobs, which at that time was equivalent to about 11% of the company’s staff. And similar to others in the tech industry, the company also froze new hires earlier this year due to unfavourable market conditions and fears of recession.
Intel hopes to reduce its fixed costs by about 10% to 15% with the latest job cuts, as Bloomberg Intelligence analyst Mandeep Singh points out. Those costs are estimated to range between US$25 billion to US$30 billion.
Intel declined to comment on the layoffs.
Intel is reportedly planning to announce job cuts, likely by the thousands, as early as next month amid a slowdown in personal computer sales.
Up to 20% of the company's staff could be affected, including those in sales and marketing groups.
The move is supposedly being timed close to Intel's third-quarter earnings report on 27 October, with the company promising to cut costs in the previous quarter.
Intel declined to comment on the layoffs.